Complimenting the possible topping pattern in NVDA, NVDS is now at major supports.
As a general rule of thumb when a 1.61 of the last upswing breaks the 2.20 zone is a good target. It can go a bit further but this is where the trade becomes more risky.
In times the 2.20 acts as support the 1.61 is retested and often the 1.27 spiked out.
Note, this happens a lot even in bear trends. Meaning NVDA could be overall due to go significantly higher and a pullback from this level would still be implied.
The case for NVDA being at make or break levels is improving. Optimism is high with the recent earnings beat and 15% gap up, but these are things you can find at various big highs.
Being a bear has a lot of risk to it when we can make big gaps up (I had a short from 730 go from a big profit gapped to being down. Entries lower did far worse). It's only worth doing with capped risk puts you can happily lose or if you have very good methods of stopping out and managing positions (And even this has the gap risk if unhedged).
But the case for the bear trade here is good. We're at a confluence of big resistance levels. It's just imperative to position in such a way that accepts the gap risks.
As a general rule of thumb when a 1.61 of the last upswing breaks the 2.20 zone is a good target. It can go a bit further but this is where the trade becomes more risky.
In times the 2.20 acts as support the 1.61 is retested and often the 1.27 spiked out.
Note, this happens a lot even in bear trends. Meaning NVDA could be overall due to go significantly higher and a pullback from this level would still be implied.
The case for NVDA being at make or break levels is improving. Optimism is high with the recent earnings beat and 15% gap up, but these are things you can find at various big highs.
Being a bear has a lot of risk to it when we can make big gaps up (I had a short from 730 go from a big profit gapped to being down. Entries lower did far worse). It's only worth doing with capped risk puts you can happily lose or if you have very good methods of stopping out and managing positions (And even this has the gap risk if unhedged).
But the case for the bear trade here is good. We're at a confluence of big resistance levels. It's just imperative to position in such a way that accepts the gap risks.